Insurance merger

Press, 11 February 1983, Page 8

Insurance merger

Jardine. Matheson and Co.. Ltd. a major international company with headquarters in Hong Kong, and Continental Corporation announced today that they have reached agreement in principle to develop jointly their insurance underwriting interests in the Asia'Pacific region. By this agreement. Continental will purchase a 30 per cent interest in Jardine’s wholly-owned subsidiary, the Lombard Insurance Group, for SHKI3O million in cash, and Continental will exchange its various existing underwriting interests in the region for an additional 30 per cent interest.

As a result. Lombard will be owned 60 per cent by Continental and 40 per cent by Jardine’s. The entire transaction is subject to regulatory and other consents. The Continental Corporation is an insurance holding company, whose property/ casualty operations are the sixth largest in the United States and whose diversified insurance activities cover the full spectrum of products and services, world wide. Jardine’s will continue as general managers of Lombard. which will be the sole direct property/casualty

under-writing vehicle in the region for both parties. The reinsurance interests of Continental and Jardine, through the Continental Reinsurance Corporation and Eastpoint Reinsurance Company respectively, will not be involved. Assuming completion of the transaction, Lombard will be strongly represented in most countries in the AsiaPacific region and will continue to develop its other overseas operation. In New Zealand, the Lombard Insurance group has branches in Christchurch. Auckland, and Wellington.